Extell pays $82.3M to Shubert Org for air rights and property in Times Square

Extell Development through the entity 726 Eighth LLC paid $82.3 million to the Shubert Organization through the entity 239-247 West 45th Street Corporation and 740 Eighth LLC for air rights and two buildings, 738 and 740 Eighth Avenue, in Times Square, Manhattan. The air rights were $51.2 million and the two parcels were a total of $31.1 million

The deal closed on July 30, 2021 and was recorded on August 16, 2021.

Extell has spent $187 million buying parcels to assemble this site, and with the additional air rights, has paid $238 million for land and air rights, since 2013. Lots 2 and 3 on Eighth Avnue are not owned by Extell, according to property records.

The signatory for Shubert Organization was Robert E. Wankel. The signatory for Extell Development was Marc Kwestel.

This is for air rights and related easements and the two buildings. The air rights rights outlined in the filing says it will be 166,552 square feet, equaling about $307 per square foot, resulting from dividing the total price by the square feet.

The NY Post first reported the sale of 738 and 740 Eighth Avenue.

Within a 400-foot radius of 724 8th Avenue, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was in new building development. It was a new building permit application filed on June 18, 2020 for a 194,552-square-foot B building at 740 Eighth Avenue.
Of those five items, one was for major renovation including a certificate of occupancy change. It was a permit issued on December 2, 2020 for the $2.0 million renovation of 286,260-square-foot R-2 building with 187 residential units at 750 8th Avenue.
Of those five items, two were sales above $5 million totaling $1.7 billion. The most recent of the two was Gottesman family which bought the 0-square-foot industrial (G6) on WEST 44th Street and 27 other properties for $1.6 billion from Gottesman family on March 9, 2021.
One of those five items was a loan which Rockpoint Group and Highgate borrowed $160.0 million from Colony Capital secured by two condo units in the 26,883-square-foot, 1,332-unit mixed-use building (RC) on 700 8th Avenue on June 30, 2020.

Correction: A prior version of this post did not include the property sale of 738 and 740 Eighth Avenue.

Direct link to Acris document. link